Macron: Saudi Arabia is a Cornerstone for Accessing Gulf, Arab, and African Markets

French President Emmanuel Macron has encouraged French entrepreneurs to invest in Saudi Arabia, describing the Kingdom as a cornerstone for accessing markets across the Gulf, Arab countries, and Africa. At the same time, he invited Saudi companies to invest in Paris, highlighting France’s position as the top destination for investments over the past five years and emphasizing its role as a gateway to European Union markets.

Speaking at the Saudi-French Investment Forum on Tuesday in Riyadh, Macron described the two nations as reliable partners amid global fragmentation. He referred to his recent conversation with Saudi Crown Prince and Prime Minister Mohammed bin Salman, where they discussed several geopolitical issues and stressed the importance of balance and peace.

Macron noted the participation of 145 French companies at the event, underscoring France’s commitment to the Kingdom. He pointed out that his country is Saudi Arabia’s second-largest foreign investor and that French companies employ approximately 12,000 people in the Kingdom.

The president highlighted the key sectors of bilateral investment partnerships, including energy, water, environment, tourism, sports, healthcare, food, space exploration, and aviation.

In addition, Macron emphasized France’s interest in supporting Saudi Arabia’s carbon reduction goals through innovation and new transportation technologies, including renewable energy and green hydrogen. He also noted the Kingdom’s significant investments in artificial intelligence (AI) and pointed out the potential for collaboration, leveraging France’s expertise in training talent and developing AI solutions that integrate climate considerations.

The French president further highlighted Paris’ aspiration to collaborate on Saudi Arabia’s Vision 2030 mega-projects, including NEOM, AlUla, and Qiddiya, as well as participate in Expo 2030 and the FIFA World Cup 2034. He stressed the importance of knowledge and technology transfer to support the organization of such large-scale events.

He also proposed leveraging French expertise to enhance Saudi Arabia’s cultural heritage sites and museums by introducing innovative experiences and bringing together experts from both nations to develop these sites.

Riyadh Metro Project

Saudi Minister of Investment Khalid Al-Falih affirmed the progress in Saudi-French economic cooperation, describing the forum as an opportunity to align efforts in various fields, including innovation and technology. Al-Falih revealed that Saudi Arabia hosts approximately 500 French companies, with 30 of them having established regional headquarters in Riyadh.

The minister also announced three major renewable energy projects in partnership with French private-sector companies and highlighted the Riyadh Metro Project as a model of successful collaboration between French and Saudi firms, paving the way for further expansion. Additionally, Al-Falih mentioned a partnership with Airbus, which recently secured the largest aircraft order of 2024.

For his part, Laurent Germain, head of the French side of the Saudi-French Business Council and president of MEDEF, described Saudi Arabia as a key partner for French companies. He identified three main factors driving French investment in the Kingdom: strong political vision, the presence of large-scale projects, and access to financing. Germain also noted the participation of a French company in the Riyadh Metro Project and emphasized Riyadh’s growing significance as a global hub for major events.

Meanwhile, Wouter Van Wersch, Executive Vice President of Airbus, revealed to Asharq Al-Awsat that the company operates around 200 commercial aircraft in Saudi Arabia and has future orders for an additional 300 planes. He added that Airbus also manages over 120 helicopters, approximately 80 military aircraft, and a number of satellites in the Kingdom.

Van Wersch reaffirmed Airbus’ commitment to supporting Vision 2030, noting significant opportunities in the transportation sector, as Saudi Arabia aims to triple the number of incoming travelers by 2030. He also highlighted the Kingdom’s potential in sustainable aviation fuel and possibly hydrogen, opening new avenues for collaboration between the two sides.

Oil prices were little changed on Thursday as investors weighed firm winter fuel demand expectations against large US fuel inventories and macroeconomic concerns.

Brent crude futures were down 3 cents at $76.13 a barrel by 1003 GMT. US West Texas Intermediate crude futures dipped 10 cents to $73.22.

Both benchmarks fell more than 1% on Wednesday as a stronger dollar and a bigger than expected rise in US fuel stockpiles pressured prices.

"The oil market is still grappling with opposite forces - seasonal demand to support the bulls and macro data that supports a stronger US dollar in the medium term ... that can put a ceiling to prevent the bulls from advancing further," said OANDA senior market analyst Kelvin Wong.

JPMorgan analysts expect oil demand for January to expand by 1.4 million barrels per day (bpd) year on year to 101.4 million bpd, primarily driven by increased use of heating fuels in the Northern Hemisphere.

"Global oil demand is expected to remain strong throughout January, fuelled by colder than normal winter conditions that are boosting heating fuel consumption, as well as an earlier onset of travel activities in China for the Lunar New Year holidays," the analysts said.

The market structure in Brent futures is also indicating that traders are becoming more concerned about supply tightening at the same time demand is increasing.

The premium of the front-month Brent contract over the six-month contract reached its widest since August on Wednesday. A widening of this backwardation, when futures for prompt delivery are higher than for later delivery, typically indicates that supply is declining or demand is increasing.

Nevertheless, official Energy Information Administration (EIA) data showed rising gasoline and distillates stockpiles in the United States last week.

The dollar strengthened further on Thursday, underpinned by rising Treasury yields ahead of US President-elect Donald Trump's entrance into the White House on Jan. 20.

Looking ahead, WTI crude oil is expected to oscillate within a range of $67.55 to $77.95 into February as the market awaits more clarity on Trump's administration policies and fresh fiscal stimulus measures out of China, OANDA's Wong said.

Macron: Saudi Arabia is a Cornerstone for Accessing Gulf, Arab, and African Markets